Court Issues a Directive to Delay the Application Procedure for New Broker Licenses & New Stock Exchange
Mon, Oct 31, 2022 4:44 PM on Latest, Stock Market,
Supreme Court issues a directive to delay the application procedure for new broker licenses and new stock exchange. No applications for new stock exchange and commodity market have yet been submitted to the Securities Board, and there is only one day left until the deadline for new stock exchange applications.
Securities Board of Nepal (SEBON) has been instructed by the Supreme Court not to begin the process of adding additional stock exchanges and brokers right away. While hearing a lawsuit challenging the procedure of introducing new stock exchange and brokers, Judge Til Prasad Shrestha issued a temporary injunction.
The Securities Market Operation Regulations 2064 and the Securities Dealers Regulations 2064 had been revised by SEBON in order to begin the process of awarding new licenses. The Securities Board released a request on Ashwin 2, 2079 with a 30-day deadline in order to carry it out. As a result, 45 companies submitted applications for stock broker licenses, while one company submitted an application for a stock dealer license.
However, after the board revised the regulations, attorney Deepak Bikram Mishra filed a writ challenging the manner in which licenses were granted. He demanded that the modified regulations not be put into effect right away and filed a writ on Kartik 3 with the Supreme Court.
Mishra stated that the court had issued a brief interim order during the Friday session to provide time for discussion and resolution between the parties. Hence, the court has scheduled a hearing with both parties on Kartik 22.
The board has also allocated 45 days for applications to the new stock market and commodity market. Tomorrow is the end of the 45-day window and no application for a stock exchange license and commodity market has been submitted yet. SEBON is accepting applications for the stock exchange and commodity markets even though the decision about the license grant will be revealed on Kartik 22.
